GST, QST Returns in Canada
GST, Government Service Tax, also called value-added tax, is imposed by the Federal Government of Canada. Every province is also entitled to impose their own sales tax. So, for people living in Quebec, the sales tax is QST. GST, QST are types of taxes that every business owner pays on the revenue they earn. When filing GST QST returns, the GST,QST collected on revenues is subtracted from the expenses incured via GST and QST.
What do accountants and bookkeepers do?
Accountants and bookkeepers help clients pay the least possible amount by identifying areas within the legislation while making sure that the clients are paying all the justified expenses that are payable with regards to GST and QST. They also check if any of their clients are entitled to any refunds. Make sure that the accountants or bookkeepers you hire are experienced enough in local and international policies, rules and regulations in order to guide you properly.
The job of bookkeepers and accountants is to make your GST QST returns filing process easier and smooth. They make the GST/QST remittance forms as easy to fill as possible. Well, filling a return form is not a very simple procedure. Keep in mind that one should fill in each and every detail on their own. However, in order to make this process easier and beneficial for you, it is highly recommended to hire a professional accountant or bookkeeper.
Filing GST/ QST in Canada
Filing GST QST returns can be a challenging process. Sometimes, the terms used by tax authorities are complex and thus, a common businessman has little idea about the language used in those return forms. For example, there are some rules related to real properties that the owners must understand in order to file their return in a proper manner. If the forms are not filled properly, they can get your organization fined. This misunderstanding can be avoided if the organizations have proper guidance regarding the filling of returns.
In Canada, the rule of thumb is, when a company or business is registered, the filing frequency of the GST QST returns and the annual sales go side by side. The company has to prepare and send a return to show the amount of tax collected from the customers and the amount of taxes paid to the government. The reporting period depends on the aggregate of the following:
annual taxable supplies of goods and services made in Canada
zero-rated supplies of goods and services
annual taxable supplies of all your associates
When a company is calculating its annual taxable supplies, it is not supposed to include the following:
– supplies made outside Canada
– zero-rated exports of goods and services
– zero-rated supplies of financial services
– taxable sales of capital real property
– supplies of goodwill
If you are supposed to report monthly or quarterly, you have to file a return and pay the amount you owe no later than in a months’ time.
Almost all the businesses in Canada get GST numbers and QST numbers. Once the registration process for the GST, QST is completed, the businesses are allowed to charge tax on the supplies that they provide to their customers. GST numbers and QST numbers are the rates of the tax that will imply on their goods and services.
It is your duty to file your taxes in the prescribed manner. People should be aware of their responsibilities and their rights towards the government in particular and the community in general.